Long Blockchain Corp (OTCMKTS:LBCC) has paid a hefty price, in the wake of its share price dwindling to all-time lows. The Nasdaq Capital Market has since delisted the former soft drinks manufacturer from the exchange, raising doubts about the emerging blockchain play future.
While delisting from the popular exchange is a big blow, it does not look all doom and gloom for the company.
A closer look at the chart above it is clear the company could be a turnaround play as dust on the delisting setback cools off. Price action is already pointing to a possible trend reversal as the stock tries to bottom out after the recent sell-off.
Long Blockchain has lost more than 90% in market value since the start of the year. The stock is currently trading at the $0.59 handle. For the stock to be considered a bounce back play, it needs to rise and stabilize above the $2 a share mark seen as a critical psychological level.
What Does Long Blockchain Corp Do?
Long Blockchain Corp casts itself as a company focused on investing in scalable blockchain-based financial technology solutions. The company strives to become a significant participant in the evolution of blockchain technology, with a view to creating long-term shareholder value.
Initially, the company through its subsidiaries specialized in the production and distribution of iced tea in the U.S. The company offered ready-to-drink iced tea under the Long Island Iced Tea brand.
Long Blockchain technology has taken a lot of heat in the market, following delisting from the Nasdaq Capital Market. The delisting came at a time when the broader cryptocurrency and blockchain sector was under pressure amidst waning investor confidence.
Amidst the disappointments, the management team is remaining upbeat about the company’s prospects. Despite a downgrade to over the counter market, Long Blockchain Corp intends to pursue its goal of becoming a leader in the blockchain technology.
“LBCC will remain a public company following the delisting, and its shares will continue to trade publicly. … The Company will continue to maintain an independent Board of Directors with an independent Audit Committee and provide annual financial statements,” Long Blockchain Corp in a statement.
Unfazed by the NASDAQ delisting setback, the blockchain technology focused company has ramped up its effort, as it moves to complete the acquisition of Hashcove. The acquisitions should strengthen Long Blockchain Corp aspirations in the fast-emerging sector, given the products it is currently working on.
The U.K based technology company is in the process of building global platforms leveraging and driving the latest trends in FinTech including encrypted solutions.
The firm is currently working on a Know Your Customer platform that will allow clients to upload documents and share them securely with any institution. It is also working on a secure digital wallet for storing sending and receiving cryptocurrencies like bitcoins and Ethers.
Smart contracts able to facilitate, verify and enforce trigger-based actions are also in the pipeline. Hashcove is also planning to launch a crypto exchange that will allow people to convert and trade cryptocurrencies of their choice.
Long Blockchain Corp has closed a strategic investment in TSLC Pte as it continues to pursue growth opportunities around blockchain technology. TSLC is the parent company of CASHe, expected to expand the company’s footprint in the business of handling digital money.
CASHe offers small loans to people who lack access to personal loans. It is becoming increasingly popular in India in part because it does not judge applicants using the traditional credit history. It currently charges annualized rates of between 30% and 36% on issued loans. With a customer base of about 10,000, the firm issues loans worth $1.5 million, a day.
In addition, Long Blockchain has acquired a minority stake in Stater, a startup specializing in the development of decentralized applications for the foreign exchange market. Stater is the parent company of Starter Global Markets a U.K brokerage firm that facilitates market access across multiple instruments.
“We will seek to leverage our investment in Stater to help Hashcove cross-market and diversify its products and offerings and will seek to leverage our investment in TSLC to diversify our distribution base for blockchain-based products. Stater and TSLC offer us entryways to very different segments of the financial services market, but that still have a need for blockchain-based products,” LBCC in a statement.
Long Blockchain 2018 Outlook
Amidst the NASDAQ delisting controversy, Long Blockchain Corp (OTCMKTS:LBCC) has done an excellent job in picking itself up. The company is aggressively executing on its FinTech strategy depicted by the number of deals and partnerships it has inked in the recent past.
The company remains an exciting turnaround play as a pure blockchain technology play. The stock should bottom out as investors take note of recent developments that affirm the company’s ability to generate long-term value in the young but lucrative blockchain sector.
Disclosure: We have no position in LBCC and have not been compensated for this article.